The company had received overwhelming support from several states for relocating the plant. After examining various sites in these states and carefully evaluating offers from the respective governments, the company has concluded that the site at Sanand and the offer from the Gujarat Government is in the best interest of the project.
Speaking at the announcement, Ratan Tata, Chairman of Tata Sons and Tata Motors, said, "The site in Gujarat, already under the possession of the state government, will help Tata Motors establish a new dedicated mother plant with the shortest possible time lag and least possible incremental project cost. This is Tata Motors' maiden venture in Gujarat, and will broad-base the company's manufacturing footprint. We are happy to contribute to Gujarat's strong industrial progress by creating an auto cluster, which will have a cascading impact on the state's economy."
Chief Minister Narendra Modi announced the project. Modi said Nano is part of Gujarat's development and 1,100 acres of land to be transfered to the Tata's.